Jia Yao Holdings Limited provided earnings guidance for the six months ended June 30, 2020. For the period, the Group is expected to record a net loss after tax in the range of approximately RMB 6.5 million to RMB 8.5 million for the six months ended 30 June 2020 as compared to the net loss after tax of approximately RMB 4.9 million for the six months ended 30 June 2019 (excluding the recognition of fair value loss on convertible notes of approximately RMB 3.1 million recorded for the six months ended 30 June 2019 (30 June 2020: nil)). The aforesaid worsened performance is mainly due to a substantial decrease in gross profit resulting from the decrease in sales of paper cigarette packages by the Group during pandemic outbreak in China in the first quarter of 2020 and decrease in average product price to certain major customers during the six months ended 30 June 2020.